European tanker owners increase russian oil supplies before sanctions take effect – WSJ

It is informed that the owners of tankers in Europe are increasing the volume of transportations of russian oil to China and India, wishing to do this before the anti-russian sanctions come into force.

Source. The Wall Street Journal.

Details. Imports of cheap russian oil to Asian countries are increasing rapidly, while Western countries have promised to refuse to cooperate with russia.

“Based on that trend it looks feasible that russia could export all the available crude without American or European Union buyers,” Stated David Wech, Vortexa’s chief economist.

Greek tanker owners, who control nearly a third of the global fleet, moved about half of russian crude volumes in May and June. In May/June they made 151 calls at russian ports, compared with 89 calls in the year-earlier period.

It is noted that Greek tankers are sailing as far as Siberia, a traditional preserve of Chinese and russian shipowners, to achieve their goal.

“Nobody can say what will happen to the tanker market once the sanctions kick in, but in the end, it may be net positive because demand for oil is still high, and the ships will likely be deployed to pick up oil from other destinations like the U.S. and the Middle East,” commented the chief executive of a Greek shipping company who asked not to be named. 

Anonymous also added that the vessels would travel longer distances which means they will make more money.

Background. EU sanctions include a ban on the supplies of russian oil to Europe. They are expected to take effect on December 5. In fact, transportation outside the continent will not be prohibited, but the vessels will not be able to obtain insurance coverage. This would mean that any sailings would be illegal in compliance with international maritime law.